ITEM: 12.3 ADMINISTRATION - Jean M. Keely, City Engineer
Title
ABATE THE 2012 INSTALLMENT AND APPROVE A SENIOR CITIZEN DEFERRAL FOR SPECIAL ASSESSMENT FUND NO. 83/884 FOR IMPROVEMENTS CONSTRUCTED WITH IMPROVEMENT PROJECT NO. 03-10 ON PIN 17-31-23-22-0018
Background
Parcel 17-31-23-22-0018 was assessed $178,652.09 for improvements constructed with Improvement Project 03-10, Construction of the West Central Area Service Road from 109th Avenue to Paul Parkway. The assessments were approved in 2004, deferred without interest in 2005, and spread over a 10 year period, with 2006 being the 1st year payable on the property taxes. A total of $152,581.00, including interest has been collected on the 2006-2011 property taxes for the special assessments levied on PIN 17-31-23-22-0018.
The property owners have been unable to sell the property and can no longer afford the annual installments due on the special assessments. They have requested and qualify for a senior citizen deferral of the special assessments.
The City of Blaine has a Senior Deferral Resolution included in the Special Assessment Policy. A provision of the resolution requires the application for a senior deferral to be submitted prior to adoption of assessments. The property owner did not meet the age requirement for a deferral at the time the assessments were approved. The owner now meets the age requirement and has shown a good faith effort in making previous payments.
It is proposed to defer the remaining four years of installments, beginning with 2012. The 2012 installment has been certified to Anoka County for collection; therefore an abatement for that installment will have to be processed with Anoka County.
The total principal amount to be deferred is $71,460.84. Interest will accrue at 6.0%, the rate established with the original assessment.
Recommendation
By motion, approve the resolution.
Body
WHEREAS, the City Council approved Resolution No. 04-116, Adopting Assessment, West Central Area Service Road From 109th Avenue NE to Paul Parkway NE, Improvement Project No 03-10; and
WHEREAS, assessments were levied on the parcel described as PIN 17-31-23-22-0018 per Resolution No. 04-116; and
WHEREAS, it has been determined that the property owner of the parcel described as PIN 17-31-23-22-0018 qualifies for a Senior Citizen Deferral of Special Assessments; and
WHEREAS, it is in the best interest of the City of Blaine and the property owner to abate the 2012 installment for Fund No. 83/884, and grant a Senior Citizen Deferral for the 2012- 2015 installments.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine as follows:
1. The 2012 installment for special assessment Fund 83/884, on the parcel described as PIN 17-31-23-22-0018, in the amount of $22,152.86 and any penalties and interest, if any, are hereby abated.
2. The outstanding principal in the amount of $71,460.82 plus interest at a rate of six (6) percent annually for special assessment Fund 83/884, on the parcel described as PIN 17-31-23-22-0018 is hereby deferred.
PASSED by the City Council of the City of Blaine this 1st day of March, 2012.